NXP completes Conexant deal
August 12, 2008
With this transaction, the first for its Home Business Unit, NXP's existing set-top box (STB) and digital TV (DTV) operations will be combined with Conexant's BMP business. NXP's Home business unit adds high-performance STB system solutions for satellite, cable and IP STB, expanding its existing portfolio in terrestrial STB, IP STB and DTV. The acquisition makes NXP a top three technology player in the Digital Video Systems market (DTV and STB).
Christos Lagomichos, EVP and General Manager of NXP's Home Business Unit, said that leadership and scale were vital to win, especially in a market that is consolidating.
Under the terms of the deal, NXP will pay Conexant US$110 million in cash up front, and additional consideration of up to US$35 million based on achievement of certain revenue milestones over the period from closing through 2009.